News 20111221 fitch

253 views

Published on

News 20111221 fitch

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
253
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

News 20111221 fitch

  1. 1. News December 21st, 2011 Fitch: Romania is less exposed to the crisis than other European countries Romania ranks 11th among 36 emerging countries in the world according to Fitch Ratings assessed the risks posed by exposure to the debt crisis in the euro area, but is best placed among the European countries in the most vulnerable 3rd ranking, according Mediafax. Fitch doesn’t anticipate a shortage of capital markets similar to that in 2008–2009, but believes that the crisis in the euro area has the potential to increase investors fears and reluctance to risk shown in a biannual report on credit rating as regards World Economic Outlook. In July, Fitch has improved Romanias rating from BB+ to BBB- level, category recommended for investment. To be ranked, Fitch considered the main channels of contagion, namely trade, external financing, the financial system situation, inflation and government debt, and calculated an overall score for Romania. Romania has a high risk exposure to banks only in the euro area average risk for exposure to euro area exports, gross external financing needs, the share of external debt in total government debt and inflation. Romania’s risks are reduced regarding raw materials dependency, government debt to GDP and an index on the financial system situation, including the ratio of loans and deposits, real growth of credit and lending to GDP ratio. The only non-European countries placed in the first third of the stack are Vietnam, located on the 1st place, Tunisia (3rd place) and Morocco (12th place). In 2nd place is Hungary, where high debt and unorthodox financial politics have undermined investor confidence in the government and forced the authorities to start negotiations with the IMF for a new assistance program. Other European countries considered by Fitch more susceptible to the crisis than Romania in the euro area are Latvia, ranked 4, followed in order by Ukraine, Turkey, Lithuania, Poland, Bulgaria and Croatia. Fitch said that the most resistant to the crisis in the euro area are countries in Asia and the Middle East.Eng. Paul Keisch Page 1

×